Pennsylvania Pension Crisis |
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| Posted: 30 October 2009 11:47 PM |
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In case you are not aware of what’s going to happen to our taxes in 2012, there are thousands of articles related to this issue. Here’s just one of them:
http://www.pennlive.com/editorials/index.ssf/2009/10/pa-state-pensions.html
All State employee pensions are affected, and we’ll most likely see income tax increases. But school porperty taxes will be hit hard. The Pennsylvania Public School Employees’ Retirement System
(PSERS) website posts the employer (that’s us) tentative contribution for school districts:
In conjunction with its actuaries, the Public School Employees’ Retirement System (PSERS) has developed tentative projections for the employer contribution rate for the next five years to assist with your budget planning. These tentative projections are based on the actual investment returns that were recently reported for the 2008/2009 fiscal year and potential actuarial experience losses for the 2008/2009 fiscal year.
Official employer contribution rate projections will not be available until the actuarial valuation is completed in December 2009.
The official employer contribution rate for FY 2010/2011 and future rate projections will be available after the PSERS’ Board of Trustees meeting on December 11, 2009 in Harrisburg. Until this time, these figures should be considered to be tentative:
2010-2011 8.40%
2011-2012 10.70%
2012-2013 29.55%
2013-2014 32.45%
2014-2015 33.95%
http://www.psers.state.pa.us/er/employer.htm
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| Posted: 02 November 2009 12:11 PM |
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[ # 1 ]
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Immediate Family
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Yeah, that should hit us hard right about the same time as the huge increase in energy costs. Maybe 2012 will be the end for many of us.
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| Posted: 04 November 2009 08:43 AM |
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[ # 2 ]
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Extended Family
Total Posts: 134
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Wow, when does it end. Always higher school taxes, electric bills set to go through the roof next year, now this.
Then they want national health care and cap & trade with a deficit that in the stratosphere, and a the U.S. dollar that is very shaky (watch for skyrocketing inflation).
We really are in trouble and we can’t spend our way out of it. That makes absolutely no sense.
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| Posted: 04 November 2009 09:15 PM |
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[ # 3 ]
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Keep in mind, the increases noted above are ONLY for educators’ pensions. This is in addition to the “normal” school budget increases.
From what I could find, not counting educators, there are over 80,000 State employees. The taxpayer is also going to have to foot the bill for their pension increases.
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| Posted: 21 November 2009 03:28 AM |
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[ # 4 ]
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Family Friend
Total Posts: 38
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This just keeps getting better and better, now all some people have to do is find a half decent job to pay for it all. Seriously, I am really concerned with the state of the economy and how people are coping in these difficult times. Does anyone want to share any thoughts, suggestions, or resolutions on what we “the American people” can do to take action. We worry, we talk about it with our friends, family, and neighbors, but there must be some things we can do to be proactive in the direction our country is going.
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| Posted: 21 November 2009 07:03 AM |
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[ # 5 ]
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Immediate Family
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Tiger,
I am afraid that we have past the tipping point. I still believe that our country is the greatest in history, but I also believe that the direction of the country has gone from a productive, innovative, morally sound society to a society that has become a government dependant, service-oriented morally bankrupt society in a single generation. I also believe that there are pockets of old-fashioned, hardworking, faith-based and morally grounded people that are willing to pay their fair share of taxes, support their own family and kids while helping to educate other children. I believe that we live in one of those areas for the most part. I have met some of the nicest hard-working, caring people I have ever known in this area. For example, I am so proud to see the Taylor Haus has recognized a need to feed folks on Thanksgiving, but I am sad to see that there are too many people in our area that will need to do go there out of necessity.
I also know a bunch of people that are scared like I am that there is little or nothing that we can do to change things. The United States once had the ability to produce its’ way out of a slumping economy with good jobs in innovative areas. Now we produce little to nothing in the durable goods arena. If we had to produce our own TV sets or appliances again (most are made in Asia) it would take 6 years to get through the red-tape to even build a new plant much less start producing a product. We have become a service-oriented society. We are creating more jobs in the food-service industry than we are in the production industry.
The late Speaker of the House, Tip O’Neil had a famous line that, “all politics are local.” I too believe that change does not start at the top, but it starts at the local level. I look at groups like the school tax coalition and the great job they do getting out the message. The group has merged over time with statewide groups with similar goals. While I believe that they have gone way above and beyond to try to make change happen the fact is that the political machine in Pennsylvania has been totally resistant to desire for change in the way public education is funded and nothing has changed. I do believe that the coalition has held more draconian tax increase efforts of the state legislature at bay, but no real changes to the funding formula have been implemented, and based on the coming “pension crisis” it probably will only get worse at both the local and state level. I have resigned myself to the fact that school taxes will never go lower, and major increases above and beyond the state allowable minimums are on right around the corner. Just remember in 10 years the SESD budget has gone from about $17 million to $45 million with roughly the same number of students!
In the short-term, I have made a personal goal of voting out every incumbent at every level of our political system. The only exception to that rule for me is Congressman Todd Platts. I don’t know him personally but I say this because he has represented my belief in his words, actions and voting in the House at almost a 100% rate. He is in the running to be named as the head of the GAO (Government Accountability Office), and it will be a great loss to our region if he does go. The 2008 election cycle from a national perspective was a negative turning point for our nation, and I hope that we turn the ship around in 2010. I hope that some conservative minded people get elected and put a halt to all of this spending that both parties has allowed to go on for too long!
Jumping off of my soapbox. Sorry for the long post, but I got on a roll!
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| Posted: 22 November 2009 12:26 AM |
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[ # 6 ]
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Family Friend
Total Posts: 38
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Mark,
Very well written. I was thinking it’s time for American’s to take it to the streets, remember the 60’s and 70’s, it’s time for citizens to make history again. Applied pressure can sway the tipping the point back in the favor of what the majority of American’s want for real change to occur. We can’t continue to remain quiet and take everything lying down. Some elected officials who hear our voice are up against lobbyist on a 4 to 1 ratio that were former politician’s who are now stroking and lining the pockets of many “self serving” elected officials. Decisions that continue to be made, laws passed and lack of the right laws, have not been in the best interest of the American people in our Great Country. Yes, it does start at the local level but voting has not been effective enough to address the state this Country is in and everything we’re up against.
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| Posted: 22 November 2009 04:13 AM |
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[ # 7 ]
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Extended Family
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markG - 21 November 2009 07:03 AM I am afraid that we have . . .
Cool post Mark! Just some comments since you hit a few of my buttons.
Tipping point? We hit that a long time ago. Unfortunately no one cared then and no one cares now.
Produce our way out? We voted politicians into office who did not want a manufacturing based economy. Starting especially in the 1980’s and up until now with GATT, NAFTA, etc we seemed to have made the decision that we leave production first to low wage southerners, then eventually to the Mexicans, now to Chinese child and prison laborers. Meanwhile, since then, we have created complicated financial products that are sold on Wall Street that are nothing more than mechanisms for the wealthy to turn our economy into a high stakes casino. Somehow we call this capitalism. From what I could tell, we have not been able to produce our way out of anything for almost 25 or 30 years. Where have people been?
All politics is local. This is mainly why I started the podcast. We’ve asked questions like those raised on this forum and others. I’m proud of the number of local organizations we worked with and the topics we covered. But nothing runs on the time and generosity of only a small handful of people for very long. SYCP aside, no matter what the local organization is, local individuals have to get involved and local businesses have to help out financially or at the very least not make things more difficult. Moreover, local election turnout is usually abysmal. Also, when local newspapers cut, do they cut out big national or international news? No they cut out local news. Also, much of the local news I see is not even reported ‘correctly’ or at least completely. It is more expensive to obtain and usually requires more ‘details’ in the story. So I think there are issues on the local front as well.
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| Posted: 22 November 2009 02:16 PM |
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[ # 8 ]
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Immediate Family
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Jason - 22 November 2009 04:13 AM Where have people been?
I think people have been aware of what’s going on for awhile, but they have been too politically divided to do anything about it. The left wants to fix things using income distribution. On the right, you have the ‘free marketers’ who feel that government just has to leave businesses alone so they can create jobs. Many on this side dislike organized labor. The middle class gets squeezed between the two. Adding to the discourse, politicians skillfully play the partisan politics and blame game which adds to the division of the people. As long as the people fight each other, the politicians can sit back and do what they want. To keep their side happy, all they have to do is resort to the old Roman bread and circuses trick. Keep the people entertained and give them handouts, and they’ll behave. Some people have had enough, this has resulted in the tea parties. However, they are dismissed as extremist loons by the powers that be. The movement is going to have to pick up a lot more support before anything changes.
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| Posted: 22 November 2009 02:26 PM |
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[ # 9 ]
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Extended Family
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markG - 21 November 2009 07:03 AM Tiger,
I am afraid that we have past the tipping point. I still believe that our country is the greatest in history, but I also believe that the direction of the country has gone from a productive, innovative, morally sound society to a society that has become a government dependant, service-oriented morally bankrupt society in a single generation. I also believe that there are pockets of old-fashioned, hardworking, faith-based and morally grounded people that are willing to pay their fair share of taxes, support their own family and kids while helping to educate other children. I believe that we live in one of those areas for the most part. I have met some of the nicest hard-working, caring people I have ever known in this area. For example, I am so proud to see the Taylor Haus has recognized a need to feed folks on Thanksgiving, but I am sad to see that there are too many people in our area that will need to do go there out of necessity.
I also know a bunch of people that are scared like I am that there is little or nothing that we can do to change things. The United States once had the ability to produce its’ way out of a slumping economy with good jobs in innovative areas. Now we produce little to nothing in the durable goods arena. If we had to produce our own TV sets or appliances again (most are made in Asia) it would take 6 years to get through the red-tape to even build a new plant much less start producing a product. We have become a service-oriented society. We are creating more jobs in the food-service industry than we are in the production industry.
The late Speaker of the House, Tip O’Neil had a famous line that, “all politics are local.” I too believe that change does not start at the top, but it starts at the local level. I look at groups like the school tax coalition and the great job they do getting out the message. The group has merged over time with statewide groups with similar goals. While I believe that they have gone way above and beyond to try to make change happen the fact is that the political machine in Pennsylvania has been totally resistant to desire for change in the way public education is funded and nothing has changed. I do believe that the coalition has held more draconian tax increase efforts of the state legislature at bay, but no real changes to the funding formula have been implemented, and based on the coming “pension crisis” it probably will only get worse at both the local and state level. I have resigned myself to the fact that school taxes will never go lower, and major increases above and beyond the state allowable minimums are on right around the corner. Just remember in 10 years the SESD budget has gone from about $17 million to $45 million with roughly the same number of students!
In the short-term, I have made a personal goal of voting out every incumbent at every level of our political system. The only exception to that rule for me is Congressman Todd Platts. I don’t know him personally but I say this because he has represented my belief in his words, actions and voting in the House at almost a 100% rate. He is in the running to be named as the head of the GAO (Government Accountability Office), and it will be a great loss to our region if he does go. The 2008 election cycle from a national perspective was a negative turning point for our nation, and I hope that we turn the ship around in 2010. I hope that some conservative minded people get elected and put a halt to all of this spending that both parties has allowed to go on for too long!
Jumping off of my soapbox. Sorry for the long post, but I got on a roll!
Exactly. Well said.
Let these elected officials (local, state and national) know how you feel and do it again and again and again.
Call them, send them e-mails and don’t stop till you start to see the change you want happening.
We can’t accept their thinking of we have an open checkbook with a large balance, so go for it. There is no money left in the checking account, we are overdrawn, and it needs to stop.
We can’t let them get away with this every time. Make your voice heard, loud and clear.
A billion here, a billion there a billion for whatever your next pork project is for. This is madness, sheer madness and we have let it go on for way too long. We were told to trust our government, they will do whatever is best for us. They will do whatever is best for them, period. Our esteemed Senator Specter changes his party because he knows he will get beat in the mid-terms. I say let’s grant him his wish and be done with someone who has made a career and a fortune serving in Washington.
Look I don’t care if you a democrat, a republican or an independent, this is your country we are talking about.
Ask your self some tough questions.
Do you really want your children and grandchildren to inherit a nation that is economically bankrupt? Do you want to see them working 6-7 days a week at 12+ hours a day to pay such heavy taxes because our elected officials have put us in this position? Because our elected officials didn’t do what their constituents wanted but what was the best way to keep them in power by putting the majority in a position where they felt they could not live without help from the government?
REDUCE THE BUDGET.
STOP THE SPENDING.
STOP THE MADNESS.
Elect representatives that will do this, hold them accountable, and if they don’t then keep voting them out of office till we find the right people to do it.
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| Posted: 22 November 2009 05:37 PM |
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[ # 10 ]
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tim_k - 22 November 2009 02:16 PM As long as the people fight each other, the politicians can sit back and do what they want. To keep their side happy, all they have to do is resort to the old Roman bread and circuses trick. Keep the people entertained and give them handouts, and they’ll behave. Some people have had enough, this has resulted in the tea parties. However, they are dismissed as extremist loons by the powers that be. The movement is going to have to pick up a lot more support before anything changes.
Where were the “tea parties” during the Bush administration? Oh that’s right, he was their guy so they waited until a Democrat got in office before they started worrying about the debt he helped to create. These tea parties I believe are one of those “diversions” one of the two extremes has come up with to keep from discussing the real issues. There are real issues around the budget and health care that conservatives CAN talk about but instead I believe they are letting us down with all of this showboating.
From a national level I believe things became irreversible with the Patriot Act and creation of the Dept. of Homeland Security - straws that finally broke the camel’s back. Also communities are “not working” quite the way they should. Hence, high school taxes, etc. There are other communities we could emulate, and information we could use to help fix the problems but everyone has to be involved - if just by staying informed and supporting organizations that inform on local issues, attend meeting of groups that seem to be aligned with your interests - right or left, try to get churches to go back to doing what they used to do before government took over many of these responsibilities, etc.
SESD’s Capital Campaign was a perfect example. It was not perfect and I know there were trust issues with the school board, and issues with the company assisting it, yadda, yadda, yadda; but it would have given businesses and individuals in the district some “negotiating chips” if they hadn’t dismissed it out of hand. They could have, formed a group to go into negotiations with the district and perhaps gotten rid of all third party fees and done it themselves taking on the functions an intermediary would have. The group could have formed a 501 type organization and partner with the district. This would have been a great opening for a good local conservative approach to helping to fund schools but we were too busy moaning about it, blowing numbers out of proportion, creating conspiracy theories, etc.
So just because of the lack of common sense and creativity across the country and locally, I suppose I will probably always believe it is much too late to do anything. I do hope things change to prove me wrong. Just my opinion on this one.
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| Posted: 22 November 2009 06:40 PM |
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[ # 11 ]
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Immediate Family
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Jason,
To address your first point about tea parties, I believe that real conservatives have been screaming about government spending for quite some time. I voted for Pres. Bush twice, but in his second term spending got way out of control. As you yourself have said, we have to start somewhere and the tea parties were not a diversion, but the left framed it as a Fox News event and did not give it the respect it deserved. Presidents Reagan, Bush I, and Clinton begged for “line item veto” power to curb pork spending in the federal budget and all were denied. The only way to curb this spending is to take the freebie pen out of their hands. It angers me to no end that Senator Mary Landrieu from La. held the Senate hostage over this idiotic healthcare bill until Harry Reid promised to add $100 MILLION in medicaid payments to La. in the new bill. Extortion on her part and #### near bribery using our tax dollars on his part!
“From a national level I believe things became irreversible with the Patriot Act and creation of the Dept. of Homeland Security - straws that finally broke the camel’s back.” That is a broad stoke for sure. Were your personal liberties impuned in any way by the creation of Homeland Security? I am not sure what became irreversible, but if there is one thing that I know is that for 7+ years after 9/11 we did not have a terrorist attack on U.S. soil. I fear that we will not be able to brag about that much longer. As a former employee of the intelligence community, I believe that the leash of our intelligence/counter-intel groups has been shortened to the point that it can no longer be effective. Some good old fashioned black ops could have solved many of our ills with Al Queda before they ever started.
And as far as the SESD Capital Campaign was concerned, I think you hit the nail right on the head. People did not trust the administation or board to undertake the project and make it work right because history has shown us that in almost every instance on fiscal matters that this group of people could not be depended on to deliver accurate estimates or deliver on a project within their own estimates of cost or time.
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| Posted: 23 November 2009 12:58 AM |
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[ # 12 ]
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Hi Mark,
Good points and I’m not going to get into my views of terorism, 9/11, homeland security, etc. My views on that are probably not mainstream and a bit complicated for the forums. Moreover if you worked in Intelligence you likely know more about it than I do anyway. As for tea parties, I consider myself sort of a get it done kind of person. I see these as something designed to rally the Republican base and not really do anything to promote more Liberterian ideals. I do think it is great that people are getting invloved just to get together and talk about issues. It may have some benefits down the road from that standpoint so overall it is not a bad thing.
I would like to clearify what I said about the Capital Campaign though. First this was just an example of the need for creative local solutions not by government but by the people. Based on your comment it is possible there was some misunderstanding. Keep in mind that under the scenario I descrbed, the district itself would eventually have had very little say in ultimately what happens. Contributors would have had the upper hand over the district and been in a position to dictate where the money went and how much, terms of bids, who got hired, what the guarentees are, etc. The board would have to vote on it as a package after working with private citizrens. However it would mean there would have to have been actual monetery contributibutions by local businesses and time put in to manage where the money went by private citizens not on the board. Perhaps when it comes right down to it the fact that people would have to contribute, participate, and get involved , that alone would have been enough to kill the idea. It would take commitment, creativity, and leadership to try to think out the box in which we find ourselves. I think it will be fun to watch and wait to see if the box is permanent or if we take the initiative and eventaully break out by coming up with creative local solutions . . .
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| Posted: 23 November 2009 01:56 AM |
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[ # 13 ]
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As for tea parties, I consider myself sort of a get it done kind of person. I see these as something designed to rally the Republican base and not really do anything to promote more Liberterian ideals.
I have to disagree with you on that. All the people I know who attended the parties were disgusted with both parties, it was not a Republican movement. The protesters don’t have a platform, but they are tired of excessive spending and the increasing size and scope of the federal government. All seem to be libertarian values to me. Why weren’t they protesting during Bush43’s term? I believe this segment who is too busy trying to make a living protested by voting out the Republicans. But once the Democrats took over all three branches, they found out that things got completely out of control. They finally realized that both parties are the problem. If the parties were only about Obama, I don’t believe they would be protesting in the state capitals. They would be concentrating on DC or places where Obama is traveling. In case you are wondering, except for voting for Platts, I voted staright Libertarian in the last election.
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| Posted: 23 November 2009 03:38 PM |
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[ # 14 ]
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Immediate Family
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Jason - 23 November 2009 12:58 AM Hi Mark,
Good points and I’m not going to get into my views of terorism, 9/11, homeland security, etc. My views on that are probably not mainstream and a bit complicated for the forums. Moreover if you worked in Intelligence you likely know more about it than I do anyway. As for tea parties, I consider myself sort of a get it done kind of person. I see these as something designed to rally the Republican base and not really do anything to promote more Liberterian ideals. I do think it is great that people are getting invloved just to get together and talk about issues. It may have some benefits down the road from that standpoint so overall it is not a bad thing.
I would like to clearify what I said about the Capital Campaign though. First this was just an example of the need for creative local solutions not by government but by the people. Based on your comment it is possible there was some misunderstanding. Keep in mind that under the scenario I descrbed, the district itself would eventually have had very little say in ultimately what happens. Contributors would have had the upper hand over the district and been in a position to dictate where the money went and how much, terms of bids, who got hired, what the guarentees are, etc. The board would have to vote on it as a package after working with private citizrens. However it would mean there would have to have been actual monetery contributibutions by local businesses and time put in to manage where the money went by private citizens not on the board. Perhaps when it comes right down to it the fact that people would have to contribute, participate, and get involved , that alone would have been enough to kill the idea. It would take commitment, creativity, and leadership to try to think out the box in which we find ourselves. I think it will be fun to watch and wait to see if the box is permanent or if we take the initiative and eventaully break out by coming up with creative local solutions . . .
I did misunderstand. I think that we are more or less on the same page.
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| Posted: 27 January 2010 08:24 PM |
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[ # 15 ]
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Immediate Family
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The Public School Employees’ Retirement Systems’ (PSERS’) Board of Trustees met at the December 11, 2009 board meeting in Harrisburg and certified an annual employer contribution rate of 8.22 percent for the next fiscal year (FY), which begins July 1, 2010.
There have been revisions to the projected rates noted in my first post. Here are the new projections:
2010-2011 8.22% (firm)
2011-2012 10.59%
2012-2013 29.22%
2013-2014 32.09%
2014-2015 33.60%
http://www.psers.state.pa.us/er/employer.htm
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